The industry’s leading framework for the highest standards of responsible sourcing of precious metals.
The LBMA has developed its responsible sourcing programme to avoid contributing to conflict, human rights abuses, terrorist financing practices, and money laundering.
The LBMA’s Responsible Sourcing Programme was set up to consolidate, strengthen, and formalise existing standards of refiners’ due diligence. The Responsible Gold Guidance has been mandatory for all gold Good Delivery refiners since 2012, and the LBMA is currently expanding the scope of its responsible sourcing framework to include silver.
The Responsible Sourcing Programme is based on the OECD Due Diligence Guidance as well as Swiss and US KYC, Anti-Money Laundering and Combating Terrorist Financing regulations.
OECD Due Diligence for Responsible Supply Chains
The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High Risk Areas provides recommendations to enable companies’ implementation of responsible sourcing practices with respect to human rights and avoiding contribution to conflict.
The LBMA, along with representatives from its membership, was actively involved in drafting the Gold Supplement section of the OECD Guidance. The LBMA continues to support the work of the OECD in the area of supply chain due diligence and related projects. In addition, Ruth Crowell, the LBMA's Chief Executive, is the Vice Chair of the OECD Gold Forum Multi-Stakeholder Steering Group, which represents the interests of stakeholders from OECD and non OECD countries, industry and civil society.
Approved Service Providers
The LBMA accredits auditors and assurance providers to enable them to conduct Responsible Gold Audits. The Approved Service Providers List is updated on a regular basis. To become an Approved Service Provider, auditors and assurance providers must complete the Approved Service Provider Application Form and return it to the LBMA for consideration.
Responsible Gold Guidance
This framework is mandatory for all refiners wishing to sell into the London Bullion Market, and is intended to assure investors and consumers that all London gold stocks are conflict-free due to compliance with an audited, conflict-free process.
The LBMA Responsible Gold Guidance (v6) consolidates and formalises pre existing high standards of refiners’ due diligence. The Guidance is based on the OECD Due Diligence Guidance as well as Swiss and US KYC, Anti-Money Laundering and Combating Terrorist Financing regulations.
Since January 2012, accredited gold Good Delivery refiners have undergone yearly audits against the LBMA’s Guidance. The LBMA Brochure provides further information about the work of the LBMA in relation to Responsible Gold.
To learn more, please refer to the LBMA training webinars and material available below.
Third-Party Audit Guidance
The Third Party Audit Guidance (v3) facilitates transparency and ensures consistent implementation of the Responsible Gold Guidance, with detailed guidance for auditors and refiners when undergoing the Responsible Gold Audit. Please click here to view the Third-Party Audit Guidance.
LBMA Responsible Gold Webinars
The most recent LBMA webinar highlighted some of the changes to the Responsible Gold documentation as well as evolving industry practices. This webinar was introduced by Sakhila Mirza, LBMA General Counsel and presented by Neil Harby, LBMA Good Delivery List Officer.
Please click here to listen, or alternatively click here to view past webinars.
Responsible Silver Market Wide Consultation
The LBMA has launched its market-wide consultation on the implementation of a Responsible Silver Guidance.
This expansion in scope will be incorporated into the LBMA’s Responsible Sourcing Programme, building on existing work and experience gained from the development of the Responsible Gold Guidance.
As with the Responsible Gold Guidance (RGG), the RSG would be based on the responsible supply chain principles of the OECD Due Diligence Guidance as well as know your customer, anti-money laundering and counter terrorist financing regulations. This builds on the existing work and experience gained from the development of the LBMA’s RGG.
The initial consultation was well received with support from governments, industry organisations and downstream. Refiners have also welcomed recognition for the work they are already doing in their commitment to responsible sourcing.
If you have any questions or comments please contact Neil Harby.
For further background information regarding the initial consultation, please find the LBMA webinar held in New York last September here.